DaimlerChrysler's net profit grows in 2005
DaimlerChrysler's net profit grows in 2005
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DaimlerChrysler's net profit grows in 2005
But restructuring charges hits operating profit
The company said 2005 net profit was $3.3 billion (2.8 billion euros), an increase from 2004's net profit of 2.5 billion euros.
Operating profit rose to $1.25 billion (1.048 billion euros) in the final three months of 2005, beating a Reuters poll average estimate of $1.15 billion (972 million euros) thanks to better-than expected results at premium division Mercedes, the Chrysler group and financial services.
Operating profit at the Chrysler group rose to $508.4 million (428 million euros), but the figure was boosted by a one-time gain.
"The fourth quarter left unmistakable skid marks at Chrysler, and this is a hint that we think points towards a weak 2006. I estimate Chrysler's operating profit could decline by 40 to 50 percent this year," he added.
"DaimlerChrysler expects an improvement in profitability in 2006, with continuous increases in operating profit during the following years," it said, citing plans to launch more than 50 new models between 2005 and 2008 while slashing costs.
Full-year 2005 operating profit came in at $6.16 billion (5.185 billion euros), meeting a forecast it would rise excluding 1.1 billion euros in restructuring charges for the loss-making Smart small-car brand.
DaimlerChrysler's net profit grows in 2005
But restructuring charges hits operating profit
The company said 2005 net profit was $3.3 billion (2.8 billion euros), an increase from 2004's net profit of 2.5 billion euros.
Operating profit rose to $1.25 billion (1.048 billion euros) in the final three months of 2005, beating a Reuters poll average estimate of $1.15 billion (972 million euros) thanks to better-than expected results at premium division Mercedes, the Chrysler group and financial services.
Operating profit at the Chrysler group rose to $508.4 million (428 million euros), but the figure was boosted by a one-time gain.
"The fourth quarter left unmistakable skid marks at Chrysler, and this is a hint that we think points towards a weak 2006. I estimate Chrysler's operating profit could decline by 40 to 50 percent this year," he added.
"DaimlerChrysler expects an improvement in profitability in 2006, with continuous increases in operating profit during the following years," it said, citing plans to launch more than 50 new models between 2005 and 2008 while slashing costs.
Full-year 2005 operating profit came in at $6.16 billion (5.185 billion euros), meeting a forecast it would rise excluding 1.1 billion euros in restructuring charges for the loss-making Smart small-car brand.
